"Growth at a reasonable price" is a good investment strategy—but not in this market. Instead, look for companies, like Conn's, BioScrip and JDS Uniphase, where earnings growth is about to explode.

A classic stock-picking strategy called "growth at a reasonable price," or GARP, calls for finding companies whose stock valuations look low compared with their long-term growth rates. That's simple and sensible, and seemingly perfect at a moment when the market is hitting new highs. But there are problems with the approach, not least of which is a shortage at the moment of cheap growers.

Revenues for firms in the Standard & Poor's 500 index slipped last quarter, according to Thomson Reuters I/B/E/S. And...